The 10-second takeaway
For the quarter ended Sep. 30 (Q3), PMC-Sierra missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins shrank, net margins dropped.
PMC-Sierra tallied revenue of $131.7 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $134.2 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $173.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS were -$1.31 for Q3 against $0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.4%, 80 basis points better than the prior-year quarter. Operating margin was -1.7%, 1,500 basis points worse than the prior-year quarter. Net margin was -208.3%, 23,560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $142.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $546.8 million. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 216 members out of 235 rating the stock outperform, and 19 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give PMC-Sierra a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PMC-Sierra is hold, with an average price target of $6.72.
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